Buying your first home? You’re not alone—and you’re not expected to know everything. Understanding your mortgage is one of the most important steps in becoming a confident, empowered homeowner. But here’s the truth: lenders don’t always explain every detail, and what you don’t know can cost you.

At B’resheet, we believe everyone deserves clear, compassionate guidance—especially when making life-changing decisions like buying a home.

What Is a Mortgage?

A mortgage is a loan you take out to buy a home, using the home itself as collateral. You borrow money from a lender and agree to pay it back monthly—with interest—over time.

But not all mortgages are created equal. Understanding the terms beyond just the interest rate can protect your family’s financial future.

What Lenders Don’t Always Explain

 1. The Real Cost Over Time

Your monthly payment may feel affordable, but over a 30-year loan, interest adds up. That $250,000 home could cost $400,000 or more by the end.

💡 Tip: Ask your lender for an amortization schedule—a breakdown of each monthly payment and how much goes toward interest vs. the loan itself.

2. Escrow and Why It Matters

Lenders may briefly mention escrow, but what does it cover?

Escrow is like a savings account managed by your lender. It’s used to pay:

• Property taxes
  
• Homeowners insurance
  

If those costs rise (and they often do), your monthly mortgage payment can increase even if your interest rate doesn’t.

3. Prepayment Penalties

Some loans charge you extra fees if you pay off your mortgage early. Lenders may not highlight this upfront unless you ask.

👉 Always ask: “Is there a prepayment penalty on this loan?”

 4. Adjustable Rates Can Be Risky

Adjustable-rate mortgages (ARMs) start with low rates, but they can rise significantly after a few years, leading to payment shock.

For families with tight budgets, a fixed-rate mortgage offers stability.